OECD: New methodology for Action 14 peer reviews, changes to MAP statistics reporting and new APA statistics reporting
Discussions on changes to the Action 14 minimum standard are still ongoing.
Changes to MAP statistics reporting and new APA statistics reporting
The Organisation for Economic Cooperation and Development (OECD) today announced that the OECD/G20 Inclusive Framework (IF) on BEPS has agreed to a new assessment methodology for the peer review process under Action 14 that seeks to increase efficiencies and improve the timeliness of the resolution of double taxation disputes. In addition, the IF has agreed new data points to be reported in the annual mutual agreement procedure (MAP) statistics and the creation of a new annual framework for reporting advance pricing arrangement (APA) statistics.
According to the OECD release, discussions on changes to the Action 14 minimum standard are still ongoing.
New Action 14 assessment methodology
The new assessment methodology [PDF 1.56 MB] for the Action 14 peer reviews includes:
- Simplified peer review process: Jurisdictions that do not have “meaningful MAP experience” would undergo a simplified peer review, with the aim of assisting the jurisdictions to set up a more robust MAP program for future MAP cases. This process starts from January 2023 onwards and will be carried out according to the new assessment schedule [PDF 372 KB].
- Full peer review process: Jurisdictions that are considered to have “meaningful MAP experience” would go through a full peer review. This process will start from January 2024 onwards, with each qualifying jurisdiction being reviewed once every four years. The assessment schedule for the full peer review process will be released by the end of 2023.
Changes to MAP statistics reporting
To provide a clearer picture of their MAP practices and to improve transparency, jurisdictions will report the additional data points below concerning post-2015 MAP cases in their MAP statistics:
- Break down of the average time to close cases in the unilateral and bilateral stages of MAP
- Identification of the age of pending cases
These data points will be reported by all IF member jurisdictions from the 2023 MAP statistics (expected to be available in 2024) onwards. Further details on these new data points are available in the revised MAP statistics reporting framework [PDF 1.56 MB].
New APA statistics reporting
In line with the progress that has been achieved in the area of APAs through the Bilateral Advance Pricing Arrangement Manual (BAPAM), IF members that have an APA program will report annual statistics with respect to APAs which will be published on the OECD website in a common format, while allowing jurisdictions some flexibility to follow their own reporting rules. The APA statistics will be available from 2024 onwards. Further details on the newly agreed rules for reporting APA statistics are available in the APA Statistics Reporting Framework [PDF 1.69 MB].
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